Xylem (NYSE:XYL) Hits New 1-Year Low – Should You Sell?

Xylem Inc. (NYSE:XYL) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $105.29 and last traded at $108.0750, with a volume of 1737875 shares changing hands. The stock had previously closed at $106.34.

Analyst Ratings Changes

Several research analysts have issued reports on the company. TD Cowen reaffirmed a “hold” rating on shares of Xylem in a report on Monday, February 23rd. The Goldman Sachs Group set a $158.00 price target on Xylem in a report on Wednesday, February 11th. William Blair assumed coverage on Xylem in a report on Monday, January 26th. They issued an “outperform” rating on the stock. Barclays dropped their price target on Xylem from $156.00 to $154.00 and set an “overweight” rating on the stock in a report on Wednesday, April 29th. Finally, Weiss Ratings cut Xylem from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 8th. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Xylem has a consensus rating of “Moderate Buy” and a consensus price target of $152.77.

Xylem Stock Performance

The firm’s fifty day moving average price is $118.88 and its 200 day moving average price is $131.16. The company has a current ratio of 1.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $26.24 billion, a PE ratio of 27.46, a PEG ratio of 1.55 and a beta of 1.08.

Xylem (NYSE:XYL) last posted its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating the consensus estimate of $1.09 by $0.03. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business had revenue of $2.13 billion for the quarter, compared to analysts’ expectations of $2.11 billion. During the same period in the previous year, the company posted $1.03 EPS. Xylem’s revenue was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, research analysts anticipate that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, May 28th will be issued a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Thursday, May 28th. Xylem’s payout ratio is currently 42.79%.

Xylem declared that its board has approved a stock repurchase plan on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to purchase up to 4.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Xylem

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the business’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. The trade was a 54.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jerome A. Peribere purchased 1,210 shares of the stock in a transaction dated Monday, May 4th. The shares were bought at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the acquisition, the director owned 27,209 shares in the company, valued at $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Xylem

Institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC boosted its holdings in Xylem by 14.4% in the first quarter. AQR Capital Management LLC now owns 30,955 shares of the industrial products company’s stock worth $3,645,000 after purchasing an additional 3,900 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in Xylem by 3.3% in the first quarter. NewEdge Advisors LLC now owns 4,151 shares of the industrial products company’s stock worth $496,000 after purchasing an additional 132 shares in the last quarter. Empowered Funds LLC boosted its holdings in Xylem by 56.1% in the first quarter. Empowered Funds LLC now owns 8,678 shares of the industrial products company’s stock worth $1,037,000 after purchasing an additional 3,120 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Xylem by 97.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 11,151 shares of the industrial products company’s stock worth $1,442,000 after purchasing an additional 5,509 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Xylem by 114.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,192 shares of the industrial products company’s stock worth $154,000 after purchasing an additional 635 shares in the last quarter. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

About Xylem

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.